Market Performance and Planning Forum. May 17, 2016

Market Performance and Planning Forum May 17, 2016

Market Performance and Planning Forum Agenda May 17, 2016 10:00-10:05 Introduction, Agenda Kristina Osborne 10:05 11:30 Market Performance and Quality Update Amber Motley Nan Liu 11:30 12:00 Policy Update Brad Cooper 12:00 1:00 Lunch 1:00 2:00 Release Update Janet Morris

Market Performance and Quality Update Amber Motley Manager, Short Term Forecasting Nan Liu Manager, Market Development and Analysis Slide 3

Good price convergence in April. Page 4

Good price convergence at Malin across day ahead and realtime markets in March. Page 5

Good price convergence at Palo Verde across day ahead and real-time markets in March. Page 6

RT prices lower than DA prices in March for both NP 15 and SP 15. RTD prices FMM prices Page 7

Insufficient upward ramping capacity in ISO increased since February, but still remained low. Page 8

Insufficient downward ramping capacity stayed low in 2016. Page 9

Congestion revenue rights market revenue inadequacy without including auction revenues Page 10

Congestion revenue rights market revenue inadequacy including auction revenues Page 11

Exceptional dispatch volume in the ISO area decreased in March and April. Page 12

Daily exceptional dispatches by reason Page 13

Bid cost recovery rose in March and April. Page 14

Bid cost recovery (BCR) by Local Capacity Requirement area Page 15

Minimum online commitment (MOC) Page 16

Pmax of MOC Cleared Units Page 17

Binding minimum online commitments in March and April MOC Name Number (frequency) of binding hours in March and April Humboldt 7110 947 MOC PEASE 479 MOC NP15 35 Orange County 7630 28 SCIT MOC 18 MOC Narrows 388679 9 Page 18

IFM under-scheduling of solar generation in March and April Page 19

IFM under-scheduling of wind generation in March and April Page 20

Renewable (VERS) schedules and forecast in March and April http://www.caiso.com/pages/documentsbygroup.aspx?groupid=eff75c 2E-F28E-4087-B88B-8DFFAED828F8 Page 21

RTD renewable (VERS) curtailment rose in March and April Page 22

Hourly distribution of maximum RTD renewable (VERS) curtailment in April Page 23

RTD renewable (VERS) curtailment and avoided curtailment Page 24

Wind, solar and hydro production Page 25

Monthly wind (VERS) downward flexibility in FMM Page 26

Monthly solar (VERS) downward flexibility in FMM Page 27

Monthly solar (VERS) downward flexibility in FMM from 11 AM to 5 PM Page 28

ISO area RTCO and RTIEO stayed low in March and April 2015 2016 (YTD) RTCO $55,509,709 $15,476,091 RTIEO $13,259,762 $2,117,077 Total Offset $68,769,472 $17,593,168 Page 29

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Count of Events Price correction events increased in April. 12 10 8 6 4 2 0 Process Events Software Events Data Error Events Tariff Inconsistency Page 30

EIM Price trends 5-minute PACW Aggregate Price 5-minute PACE Aggregate Price 15-minute PACW Aggregate Price 15-minute PACW Aggregate Price Page 31

Nevada prices since December FMM Average Prices RTD Average Prices Page 32

Transfers among balancing authority areas Page 33 Last updated: May 16, 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MAPE Day-ahead load forecast 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2014 2015 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MAPE Day-ahead peak to peak forecast accuracy 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2014 2015 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MAE Day-ahead wind forecast 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2014 2015 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MAE Day-ahead solar forecast 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2014 2015 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MAE Real-time wind forecast 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2014 2015 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec MAE Real-time solar forecast 6% 5% 4% 3% 2% 1% 0% 2014 2015 2016

Policy Update Brad Cooper Manager, Market Design and Regulatory Policy Page 40

Ongoing policy stakeholder initiatives Contingency modeling enhancements Fourth revised straw proposal and technical analysis posted in late May early June Aug 2016 Board, projected Fall 2017 implementation Generator contingency and remedial action scheme modeling Straw proposal to be posted on May 19 October 2016 Board meeting, projected Fall 2017 implementation Bid Cost Recovery Enhancements Straw Proposal to be posted in late May August 2016 Board meeting Projected Fall 2017 implementation Page 41

Ongoing policy stakeholder initiatives (continued) Stepped transmission constraints Stakeholder call on issue paper on May 12 Straw proposal to be posted on June 14 October 2016 Board meeting, projected Fall 2017 implementation CRR clawback rule modifications Draft final proposal posted on May 16 Stakeholder call on draft final proposal on May 23 June 2016 Board meeting, projected Fall 2017 implementation Page 42

Ongoing policy stakeholder initiatives (continued) Reliability services phase 2 Currently developing revised schedule June 2016 Board Aug 2016 Board, projected Fall 2017 implementation Flexible resource adequacy criteria and must-offer obligation phase 2 Currently developing revised schedule Aug 2016 Board, projected Fall 2017 implementation Reactive power and financial compensation Suspended until FERC NOPR concludes Page 43

Ongoing policy stakeholder initiatives (continued) Metering rules enhancements Draft final proposal to be posted on June 7 Stakeholder call on draft final proposal on June 14 August 2016 Board meeting Projected Fall 2018 implementation Energy storage and distributed energy resources (ESDER) Phase 2 Straw Proposal to be posted on May 24 Stakeholder call on straw proposal on May 31 October 2016 Board meeting Page 44

Ongoing policy stakeholder initiatives (continued) Transmission access charge options Revised straw proposal to be posted on May 20 Stakeholder meeting in Portland on June 1 August 2016 Board meeting, projected Fall 2018 implementation Regional resource adequacy Revised straw proposal to be posted on May 26 Aug 2016 Board meeting, projected Fall 2018 implementation Page 45

Policy stakeholder initiatives coming soon Planned to start next month Regional integration CA greenhouse gas compliance Bidding rules Planned to start 2016 Q3 Frequency response phase 2 Page 46

Market Performance and Planning Forum May 17, 2016 We are currently at lunch, returning at p.m. If you have questions, please contact Kristina Osborne at kosborne@caiso.com or via cell at 916-802-7631. Page 47 Last updated: May 16, 2016

Release Plan Update Janet Morris Director, Program Office Page 48

Release Plan 2016 Independent 2016 Capacity Procurement Mechanism Replacement Reliability Services Initiative Commitment Cost Enhancements Phase 2 (remainder) Post Implementation OMS Enhancements Expanding Metering and Telemetry Options Phase 2 Demand Response Registration Enhancements RIMS Functional Enhancements Bidding Rules Enhancements Part A Aliso Canyon Initiative Fall 2016 BAL-003 Compliance Flexible Ramping Product BCR modifications and VER settlement Acceptable Use Policy - CMRI OMAR Replacement PIRP System Decommissioning and Data Transparency Energy Imbalance Market (EIM) Year 1 Enhancements Phase 2 Energy Imbalance Market (EIM) 2016 Arizona Public Service (APS) Energy Imbalance Market (EIM) 2016 Puget Sound Energy (PSE) Energy Storage and Distributed Energy Resources (ESDER) Page 49

Release Plan 2017 Subject to further release planning: ADS User Interface Replacement Additional Data Transparency Enhancements (OASIS API changes) Additional OMS Enhancements Independent 2017 RTD Local Market Power Mitigation (LMPM) Enhancements Fall 2017 (tentative, to be confirmed) Reliability Services Initiative Phase 1B and Phase 2 Bidding Rules Enhancements Part B Stepped Constraints Commitment Cost Enhancement Phase 3 Reactive Power Requirements and Financial Compensation Flexible Resource Adequacy Criteria and Must-offer Obligation Phase 2 Bid Cost Recovery Enhancements Contingency Modeling Enhancements Energy Imbalance Market (EIM) Year 2 Enhancements EIM 2017 Portland General Electric (PGE) Spring 2018 EIM 2018 Idaho Power Company Fall 2018 (tentative, to be confirmed) Metering Rules Enhancements Regional Resource Adequacy Transmission Access Charge Options Page 50

Independent 2016 Market Simulation Market Simulation Dates RSI, CPM, Commitment Costs Phase 2, and OMS Enhancements 3/15-5/27: Session 2 (Unstructured and Structured E2E) 2/16-6/15: OMS Enhancements (Unstructured) Link to Early 2016 Release Market Simulation Plan - http://www.caiso.com/documents/marketsimulationplanearly2016release.pdf Page 51

Release Schedule 2016 http://www.caiso.com/documents/releaseschedule.pdf Page 52

June 2016 Settlements Release ISSUE SUMMARY Update BPM Configuration guide for Real Time Energy to calculate the Balancing Authority Area EIM Transfer-In Quantity and EIM Transfer-Out Quantity as the directional net difference between RTD Energy Transfer System Resource quantity and the Energy Transfer System Resource Base Schedule. BPM IMPACTED PRR 896: CG PC Real Time Energy Update the configuration to resolve Statement Hierarchy duplication issue for Scheduling Coordinators who participate in the Energy Imbalance Market and manage resources in two or more Balancing Authority Areas. No BPM Configuration guide updates required. No PRR: (CC 491, CC 64600, CC64700, CC 64740, CC 64750, CC 66200, CC 64780, CC 67740, CC 69850, and CC 64770) Page 53

June 2016 Settlements Release Milestone Date Status Configuration Guides Posted December 8, 2015 FIRST DRAFT Configuration Output File Posted December 14, 2015 MAP Stage Deployment January 13, 2016 SECOND DRAFT Configuration Output File Posted January 14, 2016 Market Simulation: Trade Dates to be Posted Calendar dates of Posting March 8 April 29, 2016 March 14 May 06, 2016 Pre-Production Configuration Output File Posted May 12, 2016 Production Deployment May 23, 2016 FINAL Configuration Output File Posted May 23, 2016 Page 54

2016 Capacity Procurement Mechanism Replacement (CPM) Project Info Application Software Changes Details/Date Competitive Solicitation Process (CSP): CSP replaces the existing administrative price process for annual, monthly and intra-monthly CPM events for flexible and generic RA capacity. CSP will cover all events that allow the ISO to procure additional capacity. CIRA: Bid Submittal system for SCs to submit capacity bids (not an existing bid type) Capacity bids to implement new validation rules (not an existing bid type) Capacity Bid submittal to be on a yearly, monthly, and intra-monthly level LSE/LRA deficiency calculation to be performed for CSP for Generic and Flexible RA data Existing CPM calculation to be deprecated for trade dates after the effective date of implementation. Manage import allocation and bilateral trades of import allocation Settlements: Settlements will need new CPM formulas that will result in charge code impacts. Reporting: If an annual or monthly CPM occurs greater than two times (over a rolling 24 month period) or more than 50% of the LSE s RA requirement is CPMed, a report must be given to Market Participants. OASIS: Publish all finalized offers into the competitive solicitation process on a rolling five-quarter delay. (Deferred) Business Process Changes Solicitation for soft offer cap. Timeline for submittal needs to be defined. Submittal process for annual/monthly CPM bid submittal New business process for amount of capacity being relied on (non-ra from partial RA) New process for Competitive Solicitation Process (annual/month/intra-monthly) Page 55

2016 Capacity Procurement Mechanism Replacement (cont.) Milestone Details/Date Status BPM Changes Business Process Changes Reliability Requirements PRR issued 11/4/15 Market Instruments issue PRR 1/8/16 - Billing & Settlements PRR issued 1/11/16 Solicitation for soft offer cap. Timeline for submittal needs to be defined. Submittal process for annual/monthly CPM bid submittal New business process for amount of capacity being relied on (non-ra from partial RA) New process for Competitive Solicitation Process (annual/month/intra-monthly) Board Approval February 5, 2015 External BRS March 31, 2015 Tariff Filed: May 26, 2015 FERC Approved: October 1, 2015 Technical Specifications CIRA Session 1 Fall 2016, MPs will use UIs OASIS Session 2 Fall 2016 Draft Configuration Guides November 23, 2015 Session 2 External Training October 21, 2015: Session 1 Onsite w/webinar, Full Day (combined w/ CPG Call) Training Materials posted SP & RP page on 10/19 January 6, 2016: Session 2 - Onsite w/ Webinar option, Full Day Training Materials post 1/5 Page 56

2016 Capacity Procurement Mechanism Replacement (cont.) Milestone Details/Date Status Market Simulation Production Activation April 11 May 6, 2016: Session 2 4/11-4/15: Unstructured 4/18-4/22: Structured Week 1& 2 4/25-4/29: Structured Week 3 - On-Site 4/26-4/29 5/2-5/13: Unstructured (New) TBD: Re-run Structured Week 3 (New) Post Structured Scenarios SIBR Rules, Release Notes, Specs posted 12/11 CIRA User Guide 1/18 11/1/2016: Session 2 Effective Date - Pending FERC Approval (New) Page 57

2016 Reliability Services Initiative (RSI) 1A Project Info Application Software Changes Details/Date CIRA: Manage new NQC/EFC process request for resource types. This will impact both internal users and Market Participants Manage Import Allocation (CPM Replacement initiative is covering this scope but is needed for this initiative) Manage RA obligation (taking into consideration substitution capacity and replacement capacity as RA capacity) will impact RA, Settlements, market, and outage. The output of CSP will be needed Publish RA Obligations externally Display Comparative snapshot of DA/RT obligation (outages, energy bids, RA obligation). Display input of RAAIM calculations Display SCP and CPM availability calculation output for historic trade dates Creation of substitution rules for flexible resource adequacy resources Modify existing DA/RT generic substitution rules DA substitution timeframe shall change from 6 AM to 8 AM Enable the release of substitute capacity for generic and flexible resources Allow imports to substitute for other imports and CAISO system resources. The RA obligation will be at a daily level Use result of Pre-qualification analysis (the pre-qualification analysis is a manual process) for real time substitution validation API for substitution and release functionality Enable Generic CPM substitutions Enable Flexible CPM substitutions Build Submit & Retrieve APIs to support Substitutions (4 types) and release of sub capacity Substitution will now be in CIRA Addition of RAAIM exempt and planned outage exemption flag Allow the outage correction process to exempt outage from RAAIM calculations up to 5 business days OMS: Add 5 nature of work attributes and various validations Remove SCP Exempt flag from display Page 58

2016 Reliability Services Initiative (cont.) -1A Project Info Details/Date Status MasterFile: Will store Use Limit Plan. There will be a new template (ULPDT Use Limit Plan Data Template) RAAM: Decommission RAAM Application Software Changes Settlements: - RAAIM (RA Availability Incentive Mechanism) NEW replaces SCP for backstop. Current SCP will retire with implementation of RAAIM. Will assess whether generic and flexible RA resources comply with MOO and better captures use limited resource availability. - New charge code changes are needed for implementation of the RA Reporting: - Report on the effectiveness of the RAAIM results (1 year after implementation) (Deferred) Other: - Modification of Use Plan with new validation rules - LSE cost allocation methodology needs to automated. - Publish list of all available prequalification combinations Page 59

2016 Reliability Services Initiative (cont.) 1A Milestone Details/Date Status Reliability Requirements - issued PRR #888 on 1/12/16 BPM Changes Business Process Changes Outage Management - issued PRR #889 on 1/12/16 Billing & Settlements - issued PRR on 1/11/16 Process to assign NQC values to NGR/PDR/DG resources Process for PDR/NGR/DG testing Process for RA Availability Incentive Mechanism (RAAIM). Must retire SCP business process flows. Modify DA/Real Time Substitution Process Process for allocating year end unallocated RA Availability Incentive Mechanism (RAAIM) funds Board Approval March 26, 2015 External BRS March 31, 2015 Tariff Filed: May 28, 2015 FERC Approved: October 1, 2015 Technical Specifications Draft Configuration Guides CIRA Session 2 Fall 2016, MPs will use UIs MasterFile Session 2 posted tech spec 9/24 on Release Planning Page posted ULDT 9/11 to RP page posted ULR documentation/ sample templates to RP page on 12/4 OMS Session 2 posted tech spec 12/2 November 23, 2015 Session 2 Page 60

2016 Reliability Services Initiative (cont.) 1A Milestone Details/Date Status External Training January 6, 2016: Session 2 Onsite w/ optional Webinar, Full Day Training Materials post 1/5 Market Simulation April 11 May 6, 2016: Session 2 4/11-4/15: Unstructured 4/18-4/22: Structured Week 1& 2 4/25-4/29: Structured Week 3 - On-Site 4/26-4/29 5/2-5/13: Unstructured (New) TBD: Re-run Structured Week 3 (New) Post Structured Scenarios SIBR Rules, Release Notes, Specs posted 12/11 CIRA User Guide 1/18 MF UI User Guide 1/6 OMS User Guide embedded in application CIRA User Guide 1/18 Production Activation 11/1/2016: Session 2 Effective Date - Pending FERC Approval (New) Page 61

2016 Commitment Costs Phase 2 Project Info Application Software Changes Details/Date For the Early Jan 2016 release, the project will Clarify definition, qualifications, and requirements for use-limited resources Implementation of the use limited definition (No longer applicable) Implement revised must-offer rules Impacted Systems: MF SIBR CCE2 Early 2016 release implementation will be coordinated as part of the Reliability Services Initiative (RSI) project Milestone Type Milestone Name Status Board Approval Yes. March 26-27, 2015 Tariff Filed: May 28, 2015 Approved in Part: September 9, 2015 (FERC rejected the proposed revisions to the definition of use limited resources, but approved all other tariff revisions.) BPM Changes Market Operations (Use Plan) issued PRR #887 on 1/11/16 Business Process Changes External Business Requirements November 24, 2015 Technical Specifications External Training Draft Configuration Guides Market Simulation No No January 6, 2016: Session 2 Onsite w/ optional Webinar, Full Day No Training Materials post 1/5 February 8 th, 2016 May 27 th, 2016 (Unstructured) Production Activation 11/1/2016: Session 2 Effective Date - Pending FERC Approval (New) Page 62

2016 Post Implementation OMS Enhancements Project Info Application Software Changes Details/Date OMS Enhancements project will implement the following functionalities: Transmission Outage Report Enhancements Manage Broadcast Status Update (deferred until Fall 2016) Manage RetrieveResourceOutage API - add Invalid and Inconsistent flags The API will be backwards compatible. OMS will support both V1 and V2 of B2B submit and retrieve outage API. The same applies to the transmission outage API as well. System change to validate the "ChangeThreshold" only at time of submission of a change request, and allow change request to be accepted or rejected at any time. The project is also addressing the backlog of known issues. Other roadmap items (Substitutions, Additional Natures of Work, and Removal of SCP exempt flag/inclusion of RAAIM exempt flag) will be part of the Reliability Services Initiative (RSI) project. External Training The implementation will impact the following systems: Outage Management System (OMS) Market Systems (IFM/RTN) EMS CIRA Settlements TBD Page 63

2016 OMS Enhancements (Continued) OMS Enhancements Market Sim Target Date Production Target Date Broadcast Status Updates Deferred scope Deferred scope Transmission Outage Report N/A May 25, 2016 Transmission Outage API Updates (New Natures of Work - RIMS_OUTAGE, RIMS_TESTING, New PSR Type SYNCHRONOUS_MACHINE and multiple instances of Adjusted Operational Limit per equipment) May 11, 2016 June 15, 2016 Note: V1 and V2 will be supported Ability to open Notes boxes to full size window N/A May 25, 2016 Rules engine updates to allow for auto-approval of certain types of outages N/A June 8, 2016 Market Impact Updates Deferred scope Deferred scope Maximum Curtailment Generation Report N/A May 25, 2016 Page 64

2016 OMS Enhancements (Continued) Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs Business Practice Manuals N/A External BRS External Business Requirements Jun 12, 2015 Tariff Tariff N/A Config Guides Config Guide N/A Tech Spec Technical Specification Document N/A Market Sim Market Sim Window Feb 16, 2016 May 24, 2016 Production Activation Post Implementation OMS Enhancements May 25, 2016 Page 65

2016 Expanding Metering and Telemetry Options Phase 2 Project Info Details/Date Status Application Software Changes BPM Changes Distributed Energy Resource Provider (DERP) Agreement: 1. General functions of the DERP, Offer Energy and AS: aggregated resources in Sub-Lap Provide ISO with accurate Information Responsible for operating and maintain DER 2. Specify data concentrator functionality for real time monitoring, control and after the fact metering data disaggregate ISO signals to sub-resources; obtain a resource response aggregate sub-resource operational and settlement meter data within a sub-lap 3. Define the provision of technical and operational information to the ISO, metering and communications requirements, submission of economic bids and self-schedules and provision of ancillary services 4. Identify responsibility for fulfilling the terms of the agreement penalties and sanctions, cost responsibility, dispute resolution, representations and warranties, liability, uncontrollable forces and other miscellaneous terms Metering, Direct Telemetry Draft final proposal June 10, 2015 Milestone Type Milestone Name /Date Status Board Approval July 16, 2015 External Business Requirements N/A Updated BPMs February 25, 2016, submitted PRR 892 Technical Specifications N/A Draft Configuration Guides N/A Tariff implementation date June 3, 2016 Page 66

2016 Demand Response Registration Enhancements Project Info Application Software Changes BPM Changes Business Process Changes Details/Date Enhance Demand Response Registration functionality and processes Develop new registration user interface for DRRS Develop new APIs for support of enhanced registration processes CPG meeting (tech spec update & UI presentation) on May 26, 2016 Metering User Training Thursday, June 2, 2016 Automation of internal registration-related processes Milestone Type Milestone Name Dates Status Board Approval Board of Governors Aproval N/A BPMs Publish Final Business Practice Manuals (Metering) Jun 08, 2016 External BRS Post Draft BPM changes (Metering) Jun 01, 2016 External BRS - Enabling Demand Response Phase 2 - Registration Tariff Tariff Impacts N/A Config Guides Configuration Guide N/A Jun 04, 2015 Tech Spec Tech Specs - DRRS Phase 2 - Registration Sep 17, 2015 Market Sim Market Sim Window May 31, 2016 - Jun 17, 2016 Production Activation Post-Mrkt Consol - DRRS Phase 2 - Reg Jun 22, 2016 Page 67

2016 RIMS Functional Enhancements Project Info Details/Date Status Application Software Changes BPM Changes Functional enhancements resulting from the Customer Partnership Group CPG. More details to be provided in the future. Generator Interconnection and Deliverability Allocation Procedures Generator Interconnection Procedures Managing Full Network Model Metering Generator Management Transmission Planning Process Customer Partnership Group 10/16/15 Application and Study Webinar 3/31/16 Milestone Type Milestone Name Dates Status Board Approval Board approval not reqiured N/A BPMs Generator Interconnection and Delivery Allocation Apr 29, 2016 External BRS External BRS not Required N/A Tariff No Tariff Required N/A Config Guides Configuration Guides not required N/A Tech Spec No Tech Specifications Required N/A Production Activation RIMS5 App & Study Mar 21, 2016 RIMS5 Queue Management, Transmission and Generation Oct 31, 2016 Page 68

2016 Bidding Rules Enhancements (Pmin Rerate) Part A Project Info Details/Date Bidding Rules Enhancement Part A will correct a structural inefficiency by combining consideration of energy and commitment cost bidding rules to refine and improve alignment between rules. Market Participants will receive the following enhancements to the existing Minimum Load Cost (MLC) bid process: Application Software Changes Improve cost bidding flexibility to consider resource operating costs and characteristics All the market participants to reflect actual costs through increased bid flexibility Reduce inefficient market outcomes due to inappropriate changed bid prices Resolve market inefficiency caused by rerating the MLC where the ISO is committing less economic resources DAM/RTM: Updated Minimum Load Cost (MLC) calculations will include: Calculate the actual MLC based on the heat rate of the resource using a DEB integration method Incremental DEB costs are added to the master file minimum load costs at the re-rated Pmin level Support hourly MLC in optimization engine Support rules for handling multiple Pmin rerates within the same hour Also applies to MSG resources per configuration BPM Changes Market Operations Milestone Type Milestone Name Dates Status Board Approval Board of Governors (BOG) approval Feb 04, 2016 BPMs Post Draft BPM changes May 13, 2016 (Emergency PRR) External BRS Post External BRS Feb 23, 2016 Tariff File Tariff Mar 23, 2016 Tech Spec Create Tech Spec N/A Market Sim Market Sim Window N/A Production Activation Bidding Rules Part A May 23, 2016 Page 69

2016 Aliso Canyon Project Info Application Software Changes Details/Date Purpose: explore market mechanisms or other tools to mitigate the risks to gas and electric markets to avoid electric service interruptions to the extent possible. SIBR: Allow MP to rebid commitment costs for hours without a day-ahead schedule or for RTM commitment periods until the minimum run time expires. SIBR rule change needed. Until implementable, tariff rule was included and monitoring will be needed. No longer generate RT bids for non-resource adequacy resources or RA resources without a MOO. STUC bidding rule change. Bid Replication (stop creating bids that do not have a MOO for STUC). Current rule: create STUC bids if DAM clean bid exists for resource. New rule: create STUC bids if 1) DA schedule or RUC schedule exists; or 2) Resource is MOO. Settlements: Leverage existing Good Faith Negotiation (GFN) to recover additional fuel costs Create and configure a Pass Through Billing (PTB) to accommodate FERC awarded amount due to After the Fact Cost Recovery Process (No system Changes) CMRI: New report to show the D+2 RUC Schedule. Will use standard CMRI report and IFM web services to do as part of Peak RC requirements, but will monitor as part of Aliso Canyon due to dependency. Integration: Integration between ECIC, ICE, and market system will be needed depending on payload impacts Nomogram: Expand number of variables from 25 to 150. This will help apply the constraint to all resources impacted by Aliso Canyon restriction. There are 6 zones and one for all zones. Potential performance issue with simultaneous constraints Non-Competitive Overwrite (UI change) BPM Changes Market Instruments, Market Operations, Settlements & Billing Page 70

2016 Aliso Canyon Milestone Type Milestone Name Dates Status Board Approval Board of Governors Approval May 04, 2016 BPMs Post Draft BPM changes TBD External BRS External Business Requirements May 16, 2016 Tariff File Tariff May 06, 2016 Receive FERC order Jun 02, 2016 Config Guides Post Draft Configuration Guides N/A Tech Spec Create ISO Interface Spec (Tech spec) N/A Market Sim Market Sim Window N/A Production Activation Aliso Canyon Jun 02, 2016 Production Activation Aliso Canyon Jul 06, 2016 Note: SIBR Rules posted 5/12/16 Page 71

2016 Aliso Canyon No Feature Section Numbers Effective Date 1 Introduce a constraint as needed into the CAISO s market processes 27.11 June 2, 2016 to limit the affected gas area burn to a maximum or minimum 2 Reserve internal transfer capability to respond to real-time load fluctuations or provide contingency reserve in southern California 27.5.6 June 2, 2016 3 Special tariff to deem selected constraints uncompetitive 39.7.2.2 June 2, 2016 4 Clarification that it has authority to suspect virtual bidding in the event that the CAISO identified market inefficiencies 5 Make two-day ahead advisory schedules available with the clarification that they are not financially binding or operationally binding 6 Adjust the gas price indexes used to calculation commitment and default energy bids for affected resources on the SoCalGas/SDG&E system 7 Use current gas price information to increase efficiency of economic dispatch 8 Permit market participants to rebid commitment costs in the real-time market 9 Permit participants to file with FERC to recover fuel costs 30.11 39.7.1.1.3 40.6.8.1.7 7.9.2 (d) June 2, 2016 6.5.2.2.3 June 2, 2016 39.7.1.1.1.3 (d) July 6, 2016 6.5.2.3.4 July 6, 2016 30.4.1.2 31.6.1 39.1.1.1.1.3 (a)(b)(c) and deleting old (b) 30.5.1(b) June 2, 2016 June 2, 2016 10 Adjust monthly CRR FNM 36.4 June 2, 2016 11 Modifications to STUC so that STUC does not use Day-Ahead bids 34.6 June 2, 2016 of resources not scheduled in day-ahead 40.6.3 Page 72

2016 Aliso Canyon Page 73

Fall 2016 GRDT Changes The following changes will be made to the Master File Generator RDT: Resource Worksheet Remove Green House Gas Cost (EIMY1P2) Add O&M Adder Type (non-modifiable; ECIC) Remove MOO Flag (RSI) Remove Stranded Load (not applicable to Gens/TGs) Configuration Worksheet Startup Heat Input Transition Worksheet Remove Max Transition Cost Remove Transition Fuel Remove Transition Energy Add Transition Midpoint MW (modifiable; new for EIMY1P2) Add Transition Midpoint Time (modifiable; new for EIMY1P2) * Note: GRDT v9.0 will no longer be supported. Page 74

Fall 2016 CMRI/OASIS/ADS High-Level Summary API changes Project CMRI OASIS ADS RTD LMPM Update (add RTD results): MPMResults v3 Update (add RTD results)- - PRC_MPM_RTM_LMP - PRC_MPM_RTM_NOMOGRAM - PRC_MPM_RTM_NOMOGRAM_CMP - PRC_MPM_RTM_FLOWGATE - PRC_MPM_CNSTR_CMP - PRC_MPM_RTM_REF_BUS -ENE_MPM N/A BCR/VER Update (add FCU Forecast marketservicetype): ExpectedEnergyAllocationDetails v3 N/A N/A Decom: ExpectedEnergyAllocationDetails v1 Forecasting (PIRP Decom) and Data Transparency New: EIRForecast v1 (PIRP Decom) New: ElectricityPriceIndex v1 (Data Transparency) N/A N/A N/A N/A Page 75

Fall 2016 CMRI/OASIS/ADS High-Level Summary API changes (cont d) Project CMRI OASIS ADS New: -PRC_RTM_SCH_CNSTR (Scheduling Constraint Shadow Prices) -ENE_HRLY_BASE_NSI (EIM BAA Hourly Base NSI) EIM Year 1 Phase 2 New: - GreenHouseGasCapData v1 -EIMInterchangeScheduleData v1 Update Add Energy,Loss,GHG components: - PRC_SPTIE_LMP - PRC_CD_SPTIE_LMP - DAM_SPTIE_LMP_GRP - RTPD_SPTIE_LMP_GRP - RTD_SPTIE_LMP_GRP N/A Flex Ramp New: - ResourceMovementPoint v1 - ResourceLevelMovement v1 Update: - MarketAwards v4 - SchedulePrices v4 Decom: - MarketAwards v2 - SchedulePrices v2 Add 'GHG' product: - PUB_BID New: - SLD_ADV_FCST (Advisory CAISO Demand Forecast) - ENE_UNCERTAINTY_MV (Uncertainty Movement by Category) - ENE_FLEX_RAMP_REQT (Flexible Ramp Requirements) - ENE_AGGR_FLEX_RAMP (Flex Ramp Aggr Awards) - ENE_FLEX_RAMP_DC (Flex Ramp Surplus Demand Curves) Update: APIWebService/v8 Decom: APIWebService/v6 Page 76

Fall 2016 Release Market Simulation Market Simulation Dates Initiative EIM - APS/PSE Fall 2016 Web Services OMAR Replacement BCR/VER Forecasting and Data Transparency EIM Year 1 Phase 2 Functionality BAL-003 CMRI AUP ESDER FRP Functionality Pricing Enhancements Fall Release Market Sim Phase 7/5/16-7/22/16 8/2/16-8/19/16 Link to Fall 2016 Release Market Simulation Plan - http://www.caiso.com/documents/marketsimulationplan_fall2016release.pdf Page 77

Fall 2016 BAL-003 Compliance Project Info Application Software Changes Details/Date To procure transferred frequency response from external BAs through a competitive solicitation process Allocate the cost of TFR to metered demand: new charge code Require generators to manage their plants consistent with NERC published reliability guidelines for primary frequency control Require generators to provide governor control and plant level control system data to the ISO, including Droop Setting, Deadband, frequency responsive maximum output level, Plant-level distributed control systems(dcs) with frequency bias term (Y/N), level temperature loop controls(@what output and/or temperature; Y/N) Increase market transparency of the ISO s frequency response performance through its Monthly Market Performances Reports Clarify the authority of ISO to designate any reserve as contingency only reserve regardless of resource s election Milestone Type Milestone Name Dates Status Board Approval BOG Approval Mar 25, 2016 BPMs Publish Final Business Practice Manuals N/A External BRS Post External BRS May 03, 2016 Tariff File Tariff Apr 21, 2016 Receive FERC order Config Guides Draft Configuration Guides Jun 20, 2016 Tech Spec Create ISO Interface Spec (Tech spec) N/A Market Sim Market Sim Window 8/2/16-8/19/16 Production Activation BAL- 003 Frequency Response Oct 01, 2016 N/A Page 78

Fall 2016 Flexible Ramping Product System Description FMM and RTD markets (no DA) will procure two new market products (each with award and price), Flex Ramp Up (FRU) and Flex Ramp Down (FRD), based on upper and lower uncertainty histogram FRP requirements and the Flex Ramping Capacity surplus demand curves. FRP award-eligible resources are 5-minute dispatchable and have economic energy bids in RTM. Forecasted Movement shall apply to all resources that have movement from binding to the first advisory interval of a given RTPD or RTD market run. Real-Time Market Uncertainty Movement for resources classified under the Supply Category shall only apply to VER resources with DOT Instructions that meet (within tolerance) their VER Forecast. This is a simplification such that uncertainty movement only applies to supply resources with schedules based on a forecast. Intertie and Load category resources shall still have uncertainty movement calculated. All uncertainty movement is in RTD only. No FRU/FRD bids or self-schedules allowed in RTM, rather FRP prices are set by the opportunity cost based on the submitted economic energy bid. FRP awards are not reserved between markets and re-procured each new market run. Market Optimization Constraint Additions/Changes: RTM enforces BAA-level and EIM Area FRU and FRD minimum requirements. FRP Surplus Cost Function procures Flexible Ramping Product uncertainty awards up to the point where the LMP is less than the expected cost of not serving FRP FRU price cap ($247/MWh); FRD price cap (-$152/MWh) FRU/FRD awards prohibited for resources operating in Forbidden Region or undergoing MSG Configuration Transition Resource Upper/Lower Operating Limits modified to consider FRP Awards; Resource Up/Down Ramping Capability Constraint modified to include FRU and FRD awards, respectively ISL/ITC import/export constraints will include FRU/FRD in addition to AS awards. Page 79

Fall 2016 Flexible Ramping Product System MasterFile EIM Description (existing field, read only) MasterFile shall define resource eligibility for FRU and FRD awards. Resource eligibility parameters are maintained by CAISO (no additional certification required). Although FRP eligible, resources must also have a RTM energy economic bids to receive FRP awards. BSAP UI will provide uncertainty requirement and ramping capacity surplus demand curve information Existing EIM Flexible Ramping Sufficiency Test will now also perform for downward flexible ramp capability over the next trading hour on a BAA-basis Introduction of new BAA upward/downward Capacity Constraints, regarding Available Balancing Capacity (ABC) Flexible Ramp Up (FRU) and Down (FRD) will be procured in RTUC Net Demand Movement shall no longer be considered in the EIM Ramping Sufficiency Test (instead, Net Forecast Movement will be used) BAAs shall only pass sufficiency tests (both upward and downward) if all intervals of trade hour have sufficient ramping capability in the respective direction. As transfers may be retracted, partial fulfillment of FRU and FRD is provided for BAAs with net EIM transfers in the direction relevant to the FRP type ADS FMM Energy Dispatch for Interties shall be provided in display (and API) FMM and RTD FRU and FRD awards shall be provided in display (and API) Page 80

Fall 2016 Flexible Ramping Product System CMRI Description The following shall be provided by CMRI reports and APIs (movement amounts publish T+1): Movement Calculation Points (FMM and RTD binding and first advisory MW schedules used for both forecasted movement and uncertainty movement calculations) Forecasted Movement by Resource (FMM and RTD) Uncertainty Movement by Resource (RTD only) FRU and FRD Uncertainty Awards by Resource (FMM and RTD) FRU and FRD Price by Resource, including the following FRU and FRD price subcomponents (that sum to the total FRU and FRD prices): BAA Constraint Shadow Price EIM Area Constraint Shadow Price EIM Balancing, Capacity, and Upward/Downward Flexible Ramping Sufficiency Test results by BAA (provided whether pass or fail) Note: Forecasted and Uncertainty Movements are calculated for MSG resources at the plant level. OASIS The following shall be provided by OASIS reports and APIs (movement amounts publish T+1): Demand Forecast by Forecast Zone (ex post) now includes first advisory interval Hourly and 15-Minute Sufficiency Evaluation Demand Forecasts (ex ante) Uncertainty Movement by Category Type (Supply, Intertie, Load) (RTD Only) Histogram and Final Uncertainty Requirements by BAA and by EIM Area (FMM and RTD) Histogram Surplus Demand Curves by BAA and by EIM Area (FMM and RTD) FRU and FRD Aggregate Awards by BAA and by EIM Area (FMM and RTD) FRU and FRD Shadow Price by BAA Group constraint (FMM and RTD; by individual BAA and by EIM Area) Page 81

Fall 2016 Flexible Ramping Product System Description Settlements Settlements shall receive and consume, if relevant, the FMM and RTD resourcespecific flex ramp product awards (FRU and FRD) due to uncertainty, FMM and RTD forecasted movement, RTD uncertainty movement, and price information, including total FRP Price (FRU and FRD) and relevant constraint contribution. Settlements shall also receive relevant category-specific (supply, intertie, and load) RTD uncertainty movement for FRU and FRD and by relevant constraint contribution. Resource Forecasted Movement shall settle at the FMM FRP price (FRU and FRD), then settle the RTD incremental movement amount at the RTD FRP price (FRU and FRD). Rescission quantities settle at RTD FRP prices. Resource Uncertainty Movement shall settle on a daily basis with a monthly resettlement Any FRP rescission shall first apply to the uncertainty award, and then forecasted movement (if any remaining) Both Forecasted Movement and FRP Award allocations shall apply to BCR FRP rescission payments/charges shall not apply to BCR Page 82

Fall 2016 Flexible Ramping Product System Description BPM changes Market instruments Market Operations Definitions & Acronyms Settlements & Billing Milestone Type Milestone Name Dates Status Board Approval Project Approved by Board of Governors Feb 03, 2016 BPMs Post Draft BPM changes May 24, 2016 External BRS External Business Requirements May 11, 2016 Tariff File Tariff June 08, 2016 Config Guides Post Draft Config guides May 20, 2016 Tech Spec Publish CMRI Technical Specifications Apr 15, 2016 Publish OASIS Technical Specifications Apr 08, 2016 Publish ADS Technical Specifications Mar 30, 2016 Market Sim Market Sim Window 8/2/16-8/19/16 Production Activation Flexible Ramping Product Oct 01, 2016 Page 83

Fall 2016 BCR Modifications and VER Settlements Project Info Application Software Changes: CMRI, Settlements Proposed scope BPM Changes Details/Date CMRI: Shall publish the Expected Energy Allocation records with a new market service type FCS. Note: FCS stands for forecast and represents capacity above the forecast. Policy Topics: Ramp rate for variable energy resources. Residual imbalance energy settlement for economic bidding variable energy resources. Persistent deviation metric applied to variable energy resources. Default energy bids for economic bidding variable energy resources. Day-ahead metered energy adjustment factor. Tariff clarifications following market issues bulletin. Settlements and Billing Milestone Type Milestone Name Dates Status Board Approval Board Approval Jul 01, 2015 BPMs Publish Final Business Practice Manuals (Settlements; Market Settlements Design and Configurations) Jun 28, 2016 External BRS Post External BRS Dec 31, 2015 Tariff File Tariff May 13, 2016 Config Guides Settlements Configuration Guide Apr 08, 2016 Tech Spec Publish Technical Specifications (CMRI) Apr 15, 2016 Market Sim Market Sim Window Jul 05, 2016 - Jul 22, 2016 Production Activation BCR Modification and VER Settlement Oct 01, 2016 Page 84

Fall 2016 Acceptable Use Policy CMRI Project Info0 Application Software Changes Details/Date Scope includes enforcement of Acceptable Use Policy for CMRI services to support the full implementation of 1 call per service per identity (as designated by certificate) every 5 seconds. Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs BPMs N/A External BRS External BRS N/A Tariff Tariff N/A Config Guides Config Guide N/A Tech Spec Tech Spec N/A Market Sim Market Sim Window 8/2/16-8/19/16 Production Activation Acceptable Use Policy - CMRI Oct 01, 2016 Page 85

Fall 2016 OMAR Replacement Project Info Application Software Changes BPM Changes Business Process Changes Details/Date The scope of the project is to replace the current OMAR Online application with a new CUI framework based interface and provide standard B2B web services integration. B2B services will be modified to align with CIM standard and to convert to GMT, and the existing FTP solution will be replaced. The new solution will also remove the custom OMAR certificates by leveraging the CAISO Multiple Application (CMA) certificates. Targeted API review sessions to scheduled for February API integration targeted for testing in April, in time for unstructured market sim UI delivery targeted for end of May, with active CPG involvement Metering and Definitions & Acronyms (references to systems may need to change) Potential Level-II business process changes under Manage Market & Reliability Data & Modeling Manage Operations Support & Settlements Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs Publish Final Business Practice Manuals N/A External BRS Publish External BRS Oct 02, 2015 Tariff Tariff N/A Config Guides Configuration Guide N/A Tech Spec Publish Tech Specs Dec 21, 2015 Market Sim Market Sim Window Jul 05, 2016 - Jul 22, 2016 Production Activation Post-Mrkt Consol - OMAR Replacement Oct 01, 2016 Page 86

Fall 2016 PIRP Decommissioning and Data Transparency Project Info Application Software Changes: PIRP/CMRI BPM Changes Business Process Changes Details/Date Forecast Data Reporting (resource-level) that was performed in PIRP will be done in CMRI. Rolling Hour Ahead, Locked Hour Ahead, and Rolling Day-Ahead forecasts CMRI to receive the Electricity Price Index for each resource and publish it to the Market Participants. CMRI Technical Specification; New APIs will be described. MPs will receive the VER reports from CMRI rather than PIRP. Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A External BRS External Business Requirements Jun 29, 2015 Tariff Tariff Filing Activities N/A Config Guides Settlements Configuration N/A Tech Spec Tech Spec Publish Technical Specifications (CMRI: PIRP Decommissioning) Publish Technical Specifications (CMRI: Data Transparency Improvements) Feb 05, 2016 Apr 15, 2016 Market Sim PIRP Decommissioning, CMRI Reports Jul 05, 2016 - Jul 22, 2016 Production Activation PIRP Decommissioning, CMRI Reports Oct 01, 2016 Page 87

Fall 2016 EIM Year 1 Enhancements Phase 2 System Description EIM transfer limit congestion treatment: Master File Define ISL/ITC for multiple ETSR scheduling limits Define ISL/ITC for EIM BAA to support FMM Remove GHG bid CAP from MF, always use ECIC/RLC EIM transfer limit congestion treatment EIM transfer congestion component by BAA share IFM/RTM EIM transfer limit subject to LMPM Allow multiple ETSR limits in ISL/ITC constraint Enforce ISL for EIM BAA by intertie Include Loss component in LMP for SP-Tie BSAP CMRI OASIS EIM entity shall submit base schedule to reflect latest information from e-tags, not limited to approved e-tags. Publish GHG bid Cap (CMRI) Publish after fact EIM interchange schedules Publishing by type of constraints, include EIM Transfer Constraints, HVDC, and other constraints. Allow API for GHG bid at public bids Publish base NSI for EIM BAA along with Base schedule test results at T-75, T-55 and T-40 Publish LMP with Loss component for SP-tie Page 88

Fall 2016 EIM Year 1 Enhancements Phase 2 (cont.) Project Info BPM Changes Business Process Changes Details/Date Energy Imbalance Market Manage market and grid, Manage operations support and Settlements Milestone Type Milestone Name Dates Status Board Approval Board Approval occurred in year 1 phase 1 N/A BPMs Post Draft BPM changes Jul 01, 2016 External BRS External Business Requirements Feb 16, 2016 Tariff File Tariff Aug 01, 2016 Config Guides Post Draft Config guides Jun 24, 2016 Tech Spec Publish CMRI Technical Specifications Apr 12, 2016 Publish OASIS Technical Specifications Apr 08, 2016 Publish Master File Technical Specifications Apr 21, 2016 Market Sim Market Sim Window Jul 05, 2016 - Jul 22, 2016 Production Activation EIM Year 1 Phase 2 Oct 01, 2016 Page 89

Fall 2016 EIM Arizona Public Service Project Info Application Software Changes Details/Date Implementation of Arizona Public Service as an EIM Entity. BPM Changes Additional Market Sim Info EIM BPM will be updated to reflect new modeling scenarios identified during APS implementation and feedback from APS. ISO promoted market network model including APS area to nonproduction system and allow APS exchange data in advance of Market Simulation on 3/7/16. Integration/Day in the Life Testing March 7 May 30, 2016 Market Simulation July 5 July 29, 2016 Parallel Operations August 1 September 30, 2016 Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs BPMs N/A External BRS External BRS N/A Tariff APS files tariff revisions with FERC Feb 12, 2016 Config Guides Config Guide N/A Tech Spec Tech Specs N/A Market Sim Market Sim Window Jul 05, 2016 - Jul 22, 2016 Production Activation EIM - Arizona Public Service Oct 01, 2016 Page 90

Fall 2016 EIM Puget Sound Energy Project Info Application Software Changes BPM Changes Additional Market Sim Info Details/Date Implementation of Puget Sound Energy as an EIM Entity. WebOMS - Provide Balancing Authorities with the ability to submit outages to WebOMS and the ability to submit PeakRC through their Coordinated Outage Scheduling System (COS). EIM BPM will be updated based on feedback from PSE. ISO promoted market network model including PSE area to non-production system and allow PSE exchange data in advance of Market Simulation on 3/7/16. Integration/Day in the Life Testing March 7 May 30, 2016 Market Simulation July 5 July 29, 2016 Parallel Operations August 1 September 30, 2016 Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs BPMs N/A External BRS OMS - BRS External Design Jul 24, 2015 Tariff Tariff filing at FERC Feb 12, 2016 Config Guides Settlements N/A Tech Spec Tech Specs N/A Market Sim Market Sim Window Jul 05, 2016 - Jul 22, 2016 Production Activation EIM - Puget Sound Energy Oct 01, 2016 Page 91

Fall 2016 - Energy Storage and Distributed Energy Resources (ESDER) Project Info Details/Date Status Scope and Application Changes 2015 scope: 1. NGR model enhancement: a. Update documentation on NGR to ISO BPMs to capture material and clarifications b. Clarify how the ISO uses state of charge in market optimization. c. Allow initial state of charge as a submitted parameter in the day-ahead market. (SIBR) d. Allow option to not provide energy limits or have ISO co-optimize an NGR based on state of charge (SIBR, IFM/RTM) 2. PDR/RDRP enhancement: a. Support alternative performance evaluation method: MGO b. Support Baseline Type-II 3. Multiple use applications: a. DERA provides services to distribution system and wholesale market b. DERA provides services to end-use customers and wholesale market Include provisions: 1. Daily SQMD for DERA; 2. Settle DERA deviation through UIE; 3. Not address potential double payment; 4. No limitation DERA for distribution system; 5. treat PDR/RDRR as serve end-use and wholesale market. Milestone Type Milestone Name Dates Status Board Approval Board Approval Feb 04, 2016 BPMs Post Draft BPM changes TBD External BRS Post External BRS May 05, 2016 Tariff File Tariff Submission May 20, 2016 Config Guides Draft Configuration Guide TBD Tech Spec Create ISO Interface Spec (Tech spec) N/A Post Release Notes (No API Changes) Jun 17, 2016 Market Sim Market Sim Window 8/2/16-8/19/16 Production Activation Storage and Aggregated DER Oct 01, 2016 Page 92

TBD - ADS UI Replacement Milestone Details/Date Status Application Software Changes BPM Changes Business Process Changes Board Approval External Business Requirements Updated BPMs Technical Specifications Draft Configuration Guides Market Simulation Tariff Production Activation Port client from Delphi to new common user interface (ADS Query Tool and Real Time Functionality) N/A N/A N/A N/A N/A N/A N/A TBD N/A TBD Page 93

TBD - Additional Data Transparency Enhancements ( OASIS API changes) Project Data Transparency OASIS Atlas Reference: 1) Price Correction Messages (ATL_PRC_CORR_MSG) 2) Scheduling Point Definition (ATL_SP) 3) BAA and Tie Definition (ATL_BAA_TIE) 4) Scheduling Point and Tie Definition (ATL_SP_TIE) 5) Intertie Constraint and Scheduling Point Mapping (ATL_ITC_SP) 6) Intertie Scheduling Limit and Tie Mapping (ATL_ISL_TIE) Energy 1) EIM Transfer Limits By Tie (ENE_EIM_TRANSFER_LIMITS_TIE) 2) EIM Transfer By Tie (ENE_EIM_TRANSFER_TIE) 3) Wind and Solar Summary (ENE_WIND_SOLAR_SUMMARY) Prices 1) MPM Default Competitive Path Assessment List (PRC_MPM_DEFAULT_CMP) 2) Real-Time Load Aggregation Point Settlement Prices Independent changes, won t impact existing services Will be made available in Production and cutover schedule is discretionary Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A External BRS External Business Requirements N/A Tariff Tariff Filing Activities N/A Config Guides Settlements Configuration N/A Tech Spec Publish Technical Specifications (OASIS): Additional Data Transparency Enhancements) Market Sim Additional Data Transparency Enhancements TBD Production Activation Additional Data Transparency Enhancements TBD Apr 08, 2016 Page 94

2017 Real Time Dispatch Local Market Power Mitigation Project Info Details/Date CMRI Display mitigated bids from RTD process Oasis (Open Access Sametime Information System): Display RTD reports for Market Clearing, the Pnode clearing, similar to current RTPD reports Application Software Changes RTM (Real Time Market) RTPD: Perform the LMPM run as an integral part of the binding interval RTPD run RTD: Proposed mitigation in RTD run would work the same way as the current RTPD run BPM Changes Business Process Changes Energy Imbalance Market (EIM): under the proposed RTD method, bids are not necessarily mitigated for the whole hour RTD MPM will work the same way as the current RTPD MPM Manage Markets & Grid ATF System Operations: Add MPM Application to Real Time and annotate inputs and outputs ATF System Operations, Real Time: Add MPM to diagram with inputs and outputs Level II Manage Real Time Operations maintain balancing area Page 95

2017 - Real Time Dispatch Local Market Power Mitigation RTD LMPM Milestone Type Milestone Name Dates Status Board Approval Board of Governors (BOG) approval Mar 24, 2016 BPMs Post Draft BPM changes (EIM) Sep 01, 2016 BPMs Post Draft BPM changes (RTD MPM) Sep 01, 2016 External BRS Post External BRS Apr 08, 2016 Tariff File Tariff Jul 06, 2016 Tariff Receive FERC order Sep 30, 2016 Tariff Pre-Tariff Filing QRB Jun 28, 2016 Tech Spec Publish Technical Specification - OASIS Apr 08, 2016 Tech Spec Publish Technical Specification - CMRI Apr 14, 2016 Market Sim Market Sim Window Nov 01, 2016 - Dec 15, 2016 Production Activation RTD - Local Market Power Mitigation Enhancement Jan 30, 2017 Page 96

Fall 2017 - Bidding Rules Enhancements Part B Project Info Application Software Changes Business Process Change BPMs Details/Date Developments under consideration include: Extend a filing right @ FERC for resources to seek recovery of marginal fuel procurement costs exceeding the commitment cost bid cap not recovered through market revenues SIBR: Allow resources without a DA schedule to redid commitment costs in the real-time market. (Policy Section 7.2.2) No longer insert bids for STUC for non-ra resources that do not have a DA market award and do not resubmit bid into RT market (Policy Section 7.2.3.) MasterFile: Provide ability to submit requests for new fuel regions (Policy Section 8.1.1.3) Include resource-specific start-up electricity costs in proxy costs based on wholesale projected electricity price, unless resource verifies costs incurred are retail rates (RDT change) Allow ability to submit a weighting when using a more than one fuel region. OASIS: Publish fuel regions (public information) Settlements: After fact cost recovery is required. Manage Transmission & Resource Implementation, Manage Entity & Resource Maintenance Updates, Manage Full Network Model Maintenance, manage Market Quality System (MQS) Market Instruments, Market Operations, Reliability Requirements, Settlements & Billing Note: Some scope items have moved to Aliso Canyon Page 97

Fall 2017 - Bidding Rules Enhancements Part B (cont.) Milestone Type Milestone Name Dates Status Board Approval BOG Approval Mar 25, 2016 BPMs Post Draft BPM changes TBD External BRS External Business Requirements Jul 15, 2016 Tariff File Tariff Oct 10, 2016 Receive FERC order Dec 14, 2016 Config Guides Prepare Draft Configuration Guides TBD Tech Spec Create ISO Interface Spec (Tech spec) TBD Market Sim Market Sim Window TBD Production Activation Bidding Rules Part B Oct 01, 2017 (Updated) Page 98

Fall 2017 - Reliability Services Initiative Phase 1B Project Info Details/Date Status Application Software Changes Business Process Changes Scope: Default flexible qualifying capacity provisions for phase 2 consideration (we might need data collection performed in order to support RSI Phase 2 Redesign of Replacement Rule for System RA and Monthly RA Process RA Process and Outage Rules for implementation for 2017 RA year Scope not delivered in RSI Phase 1A (Grandfathered Contracts, RAAM Decommissioning SCP & CPM screens from RAAM to CIRA, Acquired Contracts, OASIS reporting, web services related to APIs for CSP offers, APIs for Generic/Flex Substitutions, and Release of Generic/Flex Subs UI & API) Impacted Systems: CIRA OMS OASIS Integration (B2B) Decommission RAAM Manage Market & Reliability Data & Modeling Milestone Type Milestone Name Dates Status Board Approval Board Approval May 12, 2015 BPMs Post Draft BPM changes - Outage Management TBD Post Draft BPM changes - Reliability Requirements External BRS External Business Requirements Aug 04, 2016 (Updated) Tariff File Tariff TBD Receive FERC order Config Guides Issue Draft Configuration Guides TBD Tech Spec Create ISO Interface Spec (Tech spec) TBD Market Sim Market Sim Window TBD Production Activation Reliability Services Initiative Phase 1b Oct 01, 2017 TBD TBD Page 99

Fall 2017 - Commitment Cost Enhancements Phase 3 Project Info Application Software Changes Details/Date Scope: 1. Clarify use-limited registration process and documentation to determine opportunity costs 2. Each submission evaluated on a case-by-case basis to determine if the ISO can calculate opportunity costs ISO calculated; Modeled limitation Market Participant calculated; Negotiated limitation 3. Enhanced definition of use-limited in response to FERC s rejection of the proposed definition in Cost Commitment Enhancements Phase 2 4. Change Nature of Work attributes (Outage cards) 1. Modify use-limited reached for RAAIM Treatment 2. Add new demand response nature of work attribute for RDRR and PDR Impacted Systems: 1. CIRA 2. CMRI 3. IFM/RTN 4. SIBR 5. MasterFile 6. OASIS 7. OMS 8. Settlements BPM Changes Business Process Changes Market Instruments, Outage Management, Reliability Requirements, Market Operations Level II Manage Reliability Requirements Level II Manage Day Ahead Market Page 100

Fall 2017 - Commitment Cost Enhancements Phase 3 (cont.) Milestone Type Milestone Name Dates Status Board Approval Board of Governers (BOG) Approval Mar 25, 2016 BPMs Post Draft BPM changes TBD External BRS Post External BRS Jul 05, 2016 Tariff File Tariff TBD Receive FERC order Config Guides Config Guide TBD Tech Spec Create ISO Interface Spec (Tech spec) TBD Market Sim Market Sim Window TBD Production Activation Commitment Costs Phase 3 Oct 01, 2017 TBD Page 101

Fall 2017 - Contingency Modeling Enhancements Project Info Details/Date IFM/RTN: Adds a preventive-corrective constraint to the market cooptimization Application Software Changes OASIS/CMRI: Publish preventive-corrective capacity awards with associated LMPC Settlements: Payment and charges for corrective capacity awards, allocation of cost of the corrective capacity constraint, no-pay provisions, bid cost recovery BPM Changes Manage Full Network Model, Market Operations, Market Instruments, Settlement and Billing, Definitions and Acronyms Milestone Type Milestone Name Dates Status Board Approval Present Draft Final Proposal at BOG Jun 23, 2016 External BRS External Business Requirements TBD Post External BRS TBD Config Guides Complete ClearTrust Configuration document TBD Config Guide TBD Market Sim Market Sim Window TBD Production Activation Contingency Modeling Enhancement - Fall 2017 Release Oct 01, 2017 Page 103